Mortgage applications drop as loan rates increase

Mortgage applications decreased 5.9 percent from a week earlier, as mortgage rates increased last week. 

All indexes fell last week, with the refinance index falling 7.2 percent for the week ending June 17, while the purchase index dropped 2.8 percent from one week earlier, the Mortgage Bankers Association reported in its weekly applications survey. 

The overall four-week moving average is up 0.4 percent, dropping 0.7 percent for purchases and increasing 0.8 percent for refinancings. 

Meanwhile, the refinance share of mortgage activity decreased to 69.2 percent of total applications from 70 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages increased to 4.57 percent from 4.51, while that for 15-year fixed-rate mortgages increased to 3.70 percent from 3.67.